AIG Halts Talks On Sale of Foreign Life Unit

American International Group(AIG Quote) has told employees the insurer suspended talks to sell a life insurance unit and is preparing to take the business public as early as next year, a report says.

AIG has halted "active communications" with two unnamed bidders for American Life Insurance and closed the so-called data rooms providing access to financial data, Dennis Vigneau, the unit's chief financial officer, said during an employee meeting and conference call, Bloomberg reports. MetLife(MET Quote) made a preliminary offer of $11.2 billion for Alico and Axa SA put in a bid that excluded Japanese operations, Bloomberg previously reported.

On Monday, the insurer said the U.S. government will provide additional aid to keep the insurance giant solvent as it reported a quarterly loss of $61.7 billion. ...